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Reckitt Benckiser Group Plc-ADR (RBGLY)
:RBGLY
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Reckitt Benckiser Group
(OTC:RBGLY)
Rating:78Outperform
Price Target:
$17.00
▲(15.41% Upside)
Reckitt Benckiser Group (RBGLY) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$50.25B
Dividend Yield3.48%
Average Volume (3M)27.81K
Price to Earnings (P/E)31.3
Beta (1Y)0.16
Revenue Growth0.29%
EPS Growth-14.19%
CountryUS
Employees37,900
SectorConsumer Defensive
Sector Strength65
IndustryHousehold & Personal Products
Share Statistics
EPS (TTM)0.38
Shares Outstanding3,394,033,700
10 Day Avg. Volume32,820
30 Day Avg. Volume27,811
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)0.00
Price to Sales (P/S)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.15
Enterprise Value/Revenue4.09
Enterprise Value/Gross Profit6.75
Enterprise Value/Ebitda19.60
Forecast
1Y Price Target
$14.76Price Target Upside0.20% Upside
Rating ConsensusHold
Number of Analyst Covering1
Reckitt Benckiser Group Business Overview & Revenue Model
Company DescriptionReckitt Benckiser Group plc manufactures and sells health, hygiene, and nutrition products in the United Kingdom, the United States, China, India, and internationally. The company offers acne treatment creams, facial washes, and cleansing pads; disinfection, hygiene, and first aid products; condoms, sex toys, and lubricants; heartburn and indigestion solutions; and cough and chest congestion, multi-symptom, and sinus remedies for adults and children under the Clearasil, Dettol, Durex, Gaviscon, and Mucinex brands. It also provides analgesics; sore throat medications; and hair removal products under the Nurofen, Strepsils, and Veet brands. In addition, the company offers fragrances and devices; water softeners; home cleaning products; dish washes; toilet cleaners; disinfectants; sprays, baits, and plug-ins for pest control; stain removals; fabric washing; and other hygiene products under the Air Wick, Calgon, Cillit Bang, Finish, Harpic, Lysol, Mortein, Vanish, and Woolite brands, as well as analgesics, adult nutrition products, iron-fortified hypoallergenic baby formula, products for joint issues, and infant and toddler nutrition products, as well as vitamins, minerals, and supplements under the Biofreeze, Airborne, Mead Johnson, Move Free, Enfamil, and Nutramigen brands. Further, it provides probiotics, sore throat pain relief products, Omega products, brain health support products, cleaning and carpet cleaning products, septic tank system treatment products, cough syrups, plant-based laundry products, probiotics, and lubricants under the Digestive Advantage, Cepacol, MegaRed, Neuriva, Easy-Off, RID-X, Delsym, Botanical Origin, Bodi-Ome, and K-Y brands. The company was founded in 1819 and is headquartered in Slough, the United Kingdom.
How the Company Makes MoneyReckitt Benckiser Group generates revenue primarily through the sale of its health, hygiene, and nutrition products. The company's revenue model is centered around its diverse range of branded consumer goods, with key revenue streams coming from direct sales to retailers, distributors, and through e-commerce platforms. Significant partnerships with large retail chains and extensive distribution networks enhance its market reach and sales volume. The company's focus on innovation, brand equity, and strategic marketing initiatives also play a crucial role in maintaining its competitive edge and driving sales growth. Additionally, Reckitt invests in consumer insights and product development to align with emerging trends and consumer preferences, further contributing to its financial performance.
Reckitt Benckiser Group Earnings Call Summary
Earnings Call Date:Jul 24, 2025
(Q2-2025)
| % Change Since: 7.75%|
Next Earnings Date:Mar 04, 2026
Earnings Call Sentiment Positive
The earnings call demonstrated strong performance in Core Reckitt and Emerging Markets, with significant gains in market share and operational efficiency. However, challenges remain in specific areas such as the North American market and the Self Care category. Despite these challenges, the company's strategic initiatives and financial metrics show a positive trajectory.Q2-2025 Updates
Positive Updates
Strong Revenue Growth in Core Reckitt
Core Reckitt revenues grew 5.3% in Q2 and 4.2% for the first half of the year, driven by strong performance in emerging markets and improved volumes.
Successful Market Share Gains
The company improved market share with 59% of CMUs in gain hold territory, aligning with the 60% target.
Adjusted Operating Profit Increase
Adjusted operating profit increased by 7%, significantly ahead of revenue growth, reflecting improved efficiency and cost benefits from the Fuel for Growth program.
Emerging Markets Performance
Emerging Markets delivered 12.8% like-for-like growth for the half year and 14.9% in Q2, with strong performance in India, China, and Latin America.
Dividend and Share Buyback Program
The interim dividend increased by 5%, and a new GBP 1 billion share buyback program was announced, adding to the GBP 3 billion cumulative share buyback since 2023.
Negative Updates
Self Care Category Decline
Self Care revenues declined 1.7% in the first half, primarily due to the Mucinex shelf reset in the U.S.
North America Revenue Decline
North America like-for-like net revenue declined 1.7% in the half, with Q2 softer than Q1 due to the Mucinex sinus products shelf reset.
Mead Johnson Nutrition Revenue Decline
Mead Johnson Nutrition like-for-like net revenue declined 3.3% in the first half, impacted by cycling private label outages and market share rebuild post-tornado.
Essential Home Revenue Decline
Essential Home saw a like-for-like net revenue decline of 6.5% in the first half, though some sequential improvement was noted in Q2.
Company Guidance
In the recent earnings call for Reckitt, significant guidance was provided, showcasing the company's strong performance in the first half of 2025. Key metrics included a 5.3% growth in Core Reckitt revenues in Q2, contributing to a 4.2% increase for the half year. Emerging markets demonstrated substantial growth, with Dettol and Intimate Wellness driving over 7% volume increases in Q2. Adjusted operating profit rose by 7%, reflecting improved efficiency and cost benefits from the Fuel for Growth program, leading to a 4.4% rise in EPS. The company also announced a 5% interim dividend increase and a new GBP 1 billion share buyback program. Despite challenges in the Self Care category due to a Mucinex shelf reset in the U.S., overall market share improved, with 59% of CMUs in gain hold territory. Reckitt aims for over 4% like-for-like net revenue growth in Core Reckitt for the full year, supported by strong performance in emerging markets and anticipated recovery in Mead Johnson Nutrition.Reckitt Benckiser Group Financial Statement Overview
Summary
Reckitt Benckiser Group shows solid financial health with strong profitability and cash flow metrics, despite a recent dip in revenue. The balance sheet remains stable, with manageable leverage and good return on equity. While the company is well-positioned in terms of profitability and cash generation, future growth may be challenged by the declining revenue trend.Income Statement
Over the past year, Reckitt Benckiser Group experienced a decline in total revenue from $14.61 billion to $14.17 billion, indicating a revenue contraction of approximately 2.68%. Despite this, their gross profit margin remains robust at 60.66%, underscoring effective cost management. The EBIT margin is healthy at 17.11%, although the net profit margin decreased slightly to 10.06%. Overall, the company maintains strong profitability, but the recent downturn in revenue growth is a concern.78
Positive
Balance Sheet
The balance sheet shows stability with a debt-to-equity ratio of 1.29, indicating a moderate level of leverage. The equity ratio stands at 26.47%, reflecting a solid capital structure. Return on equity is calculated at 21.28%, demonstrating good returns for shareholders. However, the company's total assets have decreased, which may impact future growth potential.72
Positive
Cash Flow
Reckitt Benckiser Group's cash flow statement highlights robust free cash flow to net income ratio of 1.56, emphasizing strong cash generation relative to net income. Operating cash flow slightly increased to $2.682 billion, reinforcing the company's ability to generate cash from operations. Nevertheless, the free cash flow growth rate is modest at 1.37%, suggesting limited cash flow expansion.80
Positive
| Breakdown | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 14.17B | 14.61B | 14.45B | 13.23B | 13.99B |
| Gross Profit | 8.60B | 8.76B | 8.36B | 7.69B | 8.44B |
| EBITDA | 2.96B | 3.19B | 3.94B | 436.00M | 3.48B |
| Net Income | 1.43B | 1.64B | 2.33B | -63.00M | 1.19B |
Balance Sheet | |||||
| Total Assets | 25.30B | 27.14B | 28.74B | 26.95B | 31.29B |
| Cash, Cash Equivalents and Short-Term Investments | 760.00M | 1.39B | 1.16B | 1.26B | 1.65B |
| Total Debt | 8.66B | 8.54B | 8.88B | 9.56B | 10.56B |
| Total Liabilities | 18.58B | 18.67B | 19.26B | 19.49B | 22.13B |
| Stockholders Equity | 6.70B | 8.45B | 9.44B | 7.40B | 9.12B |
Cash Flow | |||||
| Free Cash Flow | 2.22B | 2.19B | 1.95B | 1.32B | 3.12B |
| Operating Cash Flow | 2.68B | 2.64B | 2.40B | 1.70B | 3.52B |
| Investing Cash Flow | -396.00M | -466.00M | -139.00M | 239.00M | -512.00M |
| Financing Cash Flow | -2.71B | -1.81B | -2.38B | -2.29B | -2.86B |
Reckitt Benckiser Group Technical Analysis
Positive
14.73
Price Trends
13.89
Positive
13.39
Positive
12.84
Positive
Market Momentum
0.35
Negative
63.72
Neutral
52.94
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RBGLY, the sentiment is Positive. The current price of 14.73 is above the 20-day moving average (MA) of 14.19, above the 50-day MA of 13.89, and above the 200-day MA of 12.84, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 63.72 is Neutral, neither overbought nor oversold. The STOCH value of 52.94 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RBGLY.
Reckitt Benckiser Group Peers Comparison
Overall Rating
UnderperformOutperform
Sector (69)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $50.25B | 31.30 | 17.21% | 3.48% | 0.29% | -14.19% | |
73 Outperform | $352.55B | 23.13 | 31.23% | 2.74% | 0.29% | 7.86% | |
73 Outperform | $147.60B | 24.54 | 28.36% | 3.21% | -0.30% | -14.60% | |
70 Outperform | $41.55B | 39.46 | 10.22% | 3.80% | -1.18% | -29.18% | |
69 Neutral | ¥216.31B | 21.02 | 8.19% | 2.24% | 4.79% | 1.35% | |
63 Neutral | $67.13B | 23.35 | 705.21% | 2.46% | 0.05% | 3.55% | |
61 Neutral | $45.35B | 18.84 | 196.26% | 3.80% | -6.89% | 7.52% |
* Consumer Defensive Sector Average
Performance Comparison
RBGLY
Reckitt Benckiser Group
14.73
4.29
41.09%
CL
Colgate-Palmolive
83.06
-17.40
-17.32%
KMB
Kimberly Clark
134.21
-2.13
-1.56%
PG
Procter & Gamble
150.76
-15.90
-9.54%
UL
Unilever
60.13
0.66
1.11%
KVUE
Kenvue, Inc.
21.64
1.16
5.66%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.